R & R KNUDSEN STUD HORSE BREEDING CONTRACT THIS AGREEMENT is made between the party named in Item 1 of Schedule 1 (Stud) and the party named in Item

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1 R & R KNUDSEN STUD HORSE BREEDING CONTRACT THIS AGREEMENT is made between the party named in Item 1 of Schedule 1 (Stud) and the party named in Item 2 of Schedule 1 (Mare Owner). BACKGROUND: 1. The Stud owns or manages the stallion named and identified in Item 3 of Schedule 1 (Stallion). 2. The Mare Owner owns or is entitled to possession of the mare named and identified in Item 4 of Schedule 1 (Mare). 3. The Mare Owner has booked the Mare for natural service by the Stallion (NS program) or for artificial insemination using fresh, chilled or frozen semen of the Stallion (AI program), as specified in Item 5 of Schedule The NS program and the AI program (together breeding program) are governed by the terms of this Agreement including Schedule 1. THE STUD AND THE MARE OWNER AGREE: 1. Condition of Mare 1.1 The Equine Breeding Centre reserves the right to refuse any mare that is in poor condition or that has been in contact with a contagious disease including Strangles and Equine Influenza. Mares which are unable to be examined or inseminated without danger to themselves, the veterinarian or the stallion will not be bred. 1.2 The Mare Owner represents and warrants to the Stud that the Mare Owner is the sole lawful and registered owner of the Mare and has all rights to enter into this Contract. 1.3 The Mare Owner hereby assumes the risk that the Stallion may pass on undesirable genetic conditions or other traits to the foal. 1.4 The Mare Owner assumes all risks of breeding the Mare. 1.5 The Mare Owner must ensure that on arrival at the Stud, the Mare will be: (a) handled, well behaved, halter broken and able to be lead; (b) free of illness and disease; (c) free of injury, except as disclosed in Item 6 of Schedule 1; (d) not suffering any impediment to breeding that would be obvious to a reasonable person. 1.6 The Stud may engage a veterinarian to examine and evaluate the Mare s reproductive system, at the Mare Owner s cost, to determine the Mare s suitability for breeding to the Stallion. 1.7 The Stud may decide the Mare is not a likely breeder, in which case the Mare Owner: (a) must remove the Mare within five (5) days after a request to do so; or (b) may, if the Stud consents, agist the Mare at the Stud until the Mare becomes likely to breed. 1.8 The Stud reserves the right to reject a Mare which is deemed inappropriate for the breeding program pursuant to the provisions contained in this paragraph 1 without refund of the booking fee or waiver of the agistment fees incurred by the Mare Owner under the terms of this Contract. 2. Service Fee, Breeding Costs and General Lien 2.1 The Mare Owner must pay the service fee specified in Item 7 of Schedule 1, as follows: (a) in the case of the NS program (i) partly by way of a booking fee specified in Item 7 of Schedule 1 payable at the time of the signing of this Contract being prior to the date of delivery of the Mare to the Stud; and

2 (ii) the balance specified in Item 7 of Schedule 1 being payable immediately on confirmation by the Stud s veterinarian of a positive pregnancy test result but no later than the date on which the Mare Owner collects the Mare from the Stud (provided however the general lien granted by the Mare Owner to the Stud under paragraph 2.2 shall at all times remain effective until the whole of the money payable by the Mare Owner to the Stud has been paid in full); (b) in the case of the AI program when the Mare Owner signs this Agreement and returns it to the Stud. 2.2 The Mare Owner must pay a Mare handling fee of $ when the Agreement is signed and returned to the Stud unless alternate arrangement by stud manager has been made. 2.3 The Mare Owner grants the Stud a general lien over the Mare, as security for:- (a) any money owing to the Stud under this Contract; and (b) any current liability to indemnify the Stud however arising. 2.4 The Stud may keep the Mare until all money owing by the Mare Owner to the Stud is fully paid and all other liabilities of the Mare Owner to the Stud are fully discharged. 2.5 If the Mare is removed by the Mare Owner from the Stud before the veterinarian engaged by the Stud has found the Mare to be in foal, then no money will be refunded to the Mare Owner and the whole of the amount owing on account of the service fee shall become immediately due and payable by the Mare Owner to the Stud. 2.6 Acceptance of any partial payment due and payable by the Mare Owner to the Stud under this Contract shall not be deemed any waiver of the prompt payment requirements specified in this Contract. 2.7 Should the pregnancy examination of the Mare prior to her departure reveal that she is not in foal, the booking fee will be transferred to the following season at the same service fee specified in Item 7 of Schedule 1 otherwise the booking fee is NON- REFUNDABLE. 2.8 The position stated in paragraph 2.6 applies to Mares that have not settled by the end of the planned breeding season. 2.9 In the circumstances referred to in paragraphs 2.6 and 2.7, the Mare Owner remains liable to reimburse to the Stud and the veterinarian engaged by the Stud all outstanding expenses incurred in connection with the Mare under the terms of this Contract For the sake of clarity, the Mare Owner acknowledges and agrees that all fees and expenses paid by the Mare Owner to the Stud under this Agreement shall not in any circumstance become refundable, either in part or in whole, by the Stud to the Mare Owner At 45 days positive pregnancy all fees are due and payable with no exceptions. 3. Service of Mare The Stud must: (a) in the case of the NS program, cause the Stallion to serve the Mare the number of times that are likely to result in a positive pregnancy test; or (b) in the case of the AI program: (i) off the Stud s premises provided all fees relating to transportation of the semen are paid or secured, supply sufficient semen for the number of inseminations of the Mare specified in Item 8 of Schedule 1 (Dose) to the Mare Owner or to whoever the Mare Owner directs in writing (AI program occurring off the Stud s premises); or (ii) on the Stud s premises inseminate the Mare with the Dose. 4. Transport of Semen 4.1 Cost of transportation for stallion when required to provide semen collection for one single mare will be passed on to the mare owner.

3 4.2. The Mare Owner must give the Stud at least 72 hours prior written notice of where and to whom the Dose is to be transported (Destination Point). 4.3 Ownership of the Dose passes to the Mare Owner when all money owing to the Stud under this Agreement is fully paid. 4.4 Risk of loss and damage to the Dose passes to the Mare Owner when the Dose is delivered to the transporter for transport to the Destination Point. 4.5 The container in which the Dose is transported belongs to the Stud or its contractor and must be returned to the Stud or the contractor, as the Stud directs, as soon as the Dose is inseminated or transferred into a veterinarian s storage facility, whichever happens first. 5. Veterinary Services 5.1 The Mare Owner authorises the Stud, as agent for and in the name of the Mare Owner, and at the Mare Owner s cost, to engage a veterinarian to examine, test or treat the Mare. 5.2 Expected fees for veterinarian services may include (but are not limited to): (a) pre-service scan; (b) post-service scan; (c) flushes and flushing solutions; and (d) standard antibiotics, oxytocins and prostaglandins. 5.3 The Mare Owner permits the Stud to engage a veterinarian to treat the Mare for anything that would ensure her wellbeing (that is, worming, treating for infection, preventative measures, etc.) 6. Agistment of Mare 6.1 The Mare shall remain at the Stud for that part of the breeding season until the pregnancy status of the Mare is determined by the veterinarian engaged by the Stud. 6.2 The Mare Owner shall be responsible for payment of agistment fees at the rate specified in Item 9 of Schedule 1 for the keeping and ordinary care of the Mare and/or foal. 6.3 The Stud agrees to provide the following to the Mare for the agistment fees:- (a) Feed of the type specified in Item 10 of Schedule 1; (b) Number of Feedings per day as specified in Item 8 in Schedule 1; (c) Housing of the type specified in Item 8 in Schedule 1; (d) The stud *shall/*shall not provide reasonable grooming for the Mare, the fees for which *shall/*shall not become part of and included in the agistment fees. (e)the Mare Owner acknowledges that the terms of the agreement for the agistment of the Mare do not constitute a personal service contract and, accordingly, any services provided for the Mare may be performed by the Stud and the Stud s employees, agents and/or family members. 7. Breeding Certificate 7.1 If the Mare Owner does not owe any money and has no current liability to the Stud:- (a) The Stud must provide the Mare Owner with a Breeding Certificate. 8. Free Return 8.1 If the free return applies (see Item 11 of Schedule 1) then, subject to paragraph 7.2: (a) The Mare Owner is entitled to a repeat of the same breeding program, on the terms of this Contract, except for this paragraph 7; (b) The Mare Owner may re-book the Mare or a replacement Mare for the same or next breeding season; and (c) The Stud will not charge a service fee to the returning Mare Owner if the Stud receives proof that the service payment has been paid in full together with a certification in writing by a veterinarian for the failing live foal is delivered to the Stud provided

4 however the Mare Owner shall remain liable to pay all other breeding costs otherwise payable under this Agreement. 8.2 Provided the Mare Owner has previously paid a full service fee for the Mare failing to produce a live foal, the free return is further conditional on the Mare Owner: (a) giving to the Stud by Registered Post addressed to the Stud within 14 days of the Mare s foaling or aborting, a veterinarian s report addressed to the Stud confirming that the Mare failed to produce a live foal (see definition of Live foal in the Item 12 of Schedule 1) and stating the probable cause; (b) proving to the Stud s reasonable satisfaction that the Mare Owner did not contribute to the probable cause of the Mare s failure to produce a live foal; and (c) assuming the Mare is alive, the Mare Owner remaining the breeder of the Mare. 8.3 In the event that the Stallion is not able to service or re-service the Mare (as the case may be), the Stud will reimburse to the Mare Owner the breeding fee only. 9. Transport 9.1 The Mare Owner is responsible for all transport arrangements (including insuring the Mare during transport and at the Stud farm). 9.2 The Mare Owner shall give to the Stud at least three (3) days prior notice as to the date of delivery and/or collection of the Mare. 10. Visiting Mare Forms 10.1 Visiting Mare Forms accompany this Contract The Mare Owner will return one (1) completed and executed Visiting Mare Form for each Mare on or before the time of delivery of the Mare to the Stud A copy of the Mare s registration certificate must accompanying the Visiting Mare s Form. 11. Limited Liability 11.1 The Mare Owner agrees to assume all risk of injury, sickness, disease, theft or death to the Mare and/or foal at her side, except where caused by negligence of the Stud, their employees, agents and contractors This limited liability shall include, but is not limited to, any personal injury or disability that may occur to Mare Owner, his/her employees, agents and contractors or guests while on the Stud s premises The Mare Owner further agrees that it has received and agrees to follow and agrees to direct his/her employees, agents and contractors or guests on the Stud s premises to follow any Stud Rules and Regulations for conduct on the Stud s premises. (Mare Owner s initials here) 12. Indemnity 12.1 The Mare Owner indemnifies: (a) the Stud against all costs and expenses of and incidental to exercising any right or power under this agreement or conferred on the Stud by law; and (b) the Stud and the Stud s employees, agents and contractors against any claim, expense, loss, liability, damage or legal costs (on an indemnity basis) that of them suffer, incur or are liable for, arising out of or relating to any negligence or misconduct of the Mare Owner. 13. Insurance To protect against the loss or injury referred to in paragraphs 10 and 11, the Mare Owner acknowledges and agrees that he/she has received a recommendation from the Stud to secure liability insurance in a sufficient amount per accident, injury and property damage. In the event that the Mare Owner has failed to secure sufficient liability insurance (or not at all), the Mare Owner shall remain personally liable to the Stud in respect of the loss or injury referred to in paragraphs 10 and Stud may sell Mare

5 14.1 It is a default event if: (a) any money remains owing by the Mare Owner to the Stud; or (b) any current liability of the Mare Owner to indemnify the Stud remains undischarged, for 21 clear days after the money was due and payable or the liability was incurred The Mare Owner irrevocably appoints the Stud and (if the Stud is a corporation) the Directors, the General Manager, and the Secretary for the time being of the Stud jointly and each of them severally to be the attorneys of the Mare Owner at any time after a default event occurs to: (a) sell, dispose or otherwise deal in any way with the Mare; (b) do all things and execute all transfers and other documents necessary for or incidental to the sale, disposal or other dealing; and (c) appoint, from time to time, a substitute or substitutes and revoke those appointments The Stud may sell the Mare by private contract, public tender or public auction, to any person on any terms that the Stud considers appropriate The Stud must apply the proceeds of sale, disposal or dealing with the Mare in this order: (a) all costs of and incidental to the sale, disposal or dealing; (b) any money owing by the Mare Owner to the Stud; (c) any current liability to indemnify the Stud; and (d) any residue to the Mare Owner The Stud, as duly appointed attorney, may do anything and execute any transfer or other document even though it involves or might involve a conflict of interest for, or confers or might confer a benefit on, the Stud. In those circumstances, the Stud is not liable to the Mare Owner or any other person because of the conflict or benefit or for any other reason A Statutory Declaration by an attorney that the power of sale, disposal or dealing contained in this paragraph 13.2 has been exercised will be sufficient proof of that fact. 15. General 15.1 If the Stud considers that the Mare poses a danger to its handlers or the Stallion, the Mare Owner must remove the Mare within five (5) days after request to do so The Stud is not obliged to hold or keep current an insurance policy covering death of or injury to the Mare or loss of or damage to the Stud If any term of this agreement is void or unenforceable for any reason, it must be severed and the document must be construed without it and the remainder given full force and effect The terms of this agreement constitute the entire agreement of the parties concerning the subject. The only enforceable obligations and liabilities of the parties in relation to the subject are those expressed in this Contract or necessarily implied into it by statute. Any prior representations, statements or promises in relation to the subject are merged in and superseded by this Contract Any addition to or variation of the terms of this Contract must be written and signed or initialled by the parties An individual signing this agreement for the Mare Owner, which is a company, warrants that he or she does so with the express authority and on behalf of the Mare Owner. 16. Donated Service Fee 16.1 The recipient of a donated service received by way of donated prize, gift, charity, purchase at auction, must abide by the terms of this contract not otherwise stated in clause The recipient of a donated service fee must nominate one mare only to claim the service.

6 16.3 The nominated mare must meet suitable criteria regarding physical care & condition The nominated mare may be subject to inspection In the case the nominated mare presents unsuitable for breeding a veterinarian report must be provided Replacement of the nominated mare with a substitute mare is only acceptable when the nominated mare is deemed medically unsuitable The owner of a donated service fee must ensure the nominated mare is pregnancy tested by registered veterinarian no more than 16 days post breeding or artificial insemination The recipient of a donated service is entitled to one service fee only The donated service fee entitles one free service producing one live foal only The recipient of a donated service is entitled to 3 breeding attempts only to produce one live foal The recipient of a donated service must pay all expenses excluding the donated service fee. 17.Governing Law & Jurisdiction 17.1 The laws of the State of Queensland apply to this Contract The parties submit unconditionally to the non-exclusive jurisdiction of the courts and tribunals of Queensland in respect of any claim or dispute between them under this agreement. Sign here SCHEDULE 1 ITEM DESCRIPTIONS (tick relevant boxes) Item 1: Stud s name, address, ABN, telephone and fax numbers, address Rick and Rebecca Knudsen Illuka, Mail Service 341, Taroom Qld 4420 ABN Mobile Phone: rebeccaknudsen@bigpond.com Item 2: Mare Owner s name, address, ABN, telephone and fax numbers, address Name: Address: ABN: Mobile Phone: address: Item 3: Stallion s name and identification Item 4: Mare s name and identification Item 5: 1 NS Program _ AI Program If AI Program:

7 _ Fresh _ Chilled _ Frozen _ Supply _ Insemination only Item 6: Pre-existing Injuries (if none, state nil) Item 7: Service fee (including GST): $ comprising: Booking fee (paragraph 2.1(a)): $0 Balance payable (paragraph 2.1(b)): $ Item 8: Number of Inseminations in a Dose: Item 9: Agistment fees (including GST): $ 77 per week Item 10: Type of Feed: Prepared pasture, hay, oats, oil, free choice mineral Number of feedings per day: 2 Type of Housing: Shared pasture Item 11: Free return: No Live foal guarantee: Yes Sign here Item 12: Live foal definition: A foal that stands and nurses without assistance, as in generally recognised in standard veterinary practice and, which shall be evidenced by a written statement from a licensed veterinarian within one week from date of death Signatures & Date: Signed by and on behalf of the Stud: Print name of person signing for the Stud: Date: Signed by or on behalf of the Mare Owner: Print name of person signing for the Mare Owner: Date:

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